When we talk about education in the mortgage industry, we are often referring to educating employees. We want to make sure our team is equipped with the appropriate qualifications and credentials to serve our customers. But what about a different kind of education? What about educating the customers themselves?Click to continue
The HECM Non-Recourse Connection
It was one of the puzzles of the non-borrowing spouses’ (NBS) litigation saga which began in March 2011. Within a month of Bennett v. Donovan, in which non-borrowing spouses sued HUD alleging failure to protect them from displacement when their borrowing spouses died (as required by HECM law), HUD took a seemingly unrelated action.Click to continue
When we think of education in the mortgage industry, we often think of internal education. That is, we think of providing education for our employees so that they may better serve our customers. We place a great deal of importance on getting the appropriate certifications and qualifications for those in our company. But that isn't the only education that matters ...Click to continue
I am a big fan of being approachable as a leader. If employees have questions they need answer, they should feel free to ask you directly. Having an open door for your employees can minimize the risk of them making poor decisions.Click to continue
Fear of crossover hole
Risk (or the chance of loss) is common to any type of mortgage lending but reverse-mortgage lending carries an uncommon risk. Insiders call it crossover risk.
Imagine this: you lend $100,000 to a 76-year-old borrower, secured by a home valued at $200,000; because there are no monthly repayments of principal and interest until the borrower moves, sells, or dies, the loan balance (debt) rises while the home’s equity falls, the opposite of what happens with a traditional forward mortgage loan.Click to continue
There is one quality in a leader that doesn't tend to get a lot of attention. I have spoken a lot about the importance of integrity, the importance of conviction, the importance of education, and so on. But if there is one quality in a leader that can increase effectiveness in dealing with employees more than any other, it is approachability.Click to continue
People are forgetful. Even if they have positive experience, it is quickly forgotten--lost in all of the hustle and bustle of life. Did you respond promptly to an inquiry about a loan? Were you kind and courteous with the prospect? Did you provide them with valuable information? Did they express gratitude for your exemplary service? If you can answer "yes" to all of these questions, then you've got nothing to worry about, right?Click to continue
On July 23, 2014, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) jointly issued an announcement, entitled “CFPB, FTC and States Announce Sweep Against Foreclosure Relief Scammers” (“Announcement”).1
Regulatory origin of NBS problem
Interpretation of law is a big deal. The non-borrowing spouses’ (NBS) problem sprang from an interpretation of HECM law which excluded NBS from protection against displacement.
As we saw in part one, Congress wanted HECM “homeowner” shielded from displacement, and it defined “homeowner” to include the “spouse” of the homeowner without difference between a borrowing and a non-borrowing homeowner.Click to continue
Beginning Aug. 4, HECM protects non-borrowing spouses (NBS), and the main reverse mortgage product in the U.S. is stronger for it. If you are a non-borrowing spouse, the one who did not sign the loan papers, and if your status was disclosed to the lender (and certified) at loan origination, you are protected from foreclosure and displacement if your borrowing spouse dies.Click to continue